Gaston County, school board dismissed from Belmont Middle lawsuit

Wednesday

Apr 24, 2019 at 3:45 PMApr 24, 2019 at 4:13 PM

A federal judge has dismissed the cases against several parties involved in a lawsuit regarding the controversial Belmont Middle School land purchase.

On April 10, Chief U.S. District Court Judge Frank D. Whitney granted motions for summary judgment to fully dismiss plaintiff M.B. Realty Group’s claims against defendants Gaston County and the Gaston County Board of Education.

Whitney verbally granted partial summary judgment motion for the other defendants in the case, the Carstarphen Family Foundation, The Stowe Foundation, Gaston County Commissioner Tracy Philbeck and former school board member Catherine Roberts.

The foundations' Charlotte-based attorney Kevin A. Marshall emailed The Gaston Gazette the following statement on behalf of his clients:

“The Carstarphen Family Foundation and the Stowe Foundation, Inc. are very pleased the court partially granted their motions for summary judgment and dismissed the plaintiff’s baseless claims for punitive damages and unfair and deceptive trade practices. The foundations look forward to their day in court and anticipate the remainder of the plaintiff’s claims will be found without merit.”

In July 2017, the Mount Holly-based M.B. Realty and its owner Matt Beckham sued the aforementioned parties and Superintendent of Schools Jeff Booker-- claims which Whitney dismissed previously—several weeks before the two foundations jointly sold 78 acres of land in South Point to Gaston County to build a new Belmont middle school.

Beckham was initially brokering the deal to facilitate the county’s purchase of the land.

On Oct. 3, 2016, MB Realty entered into contract with the property’s owners — The Carstarphen Family Foundation and The Stowe Foundation — to sell the property for $5.1 million, regardless whether it was to the county or another buyer.

But Beckham claims he was cut out of the deal when it fell apart after commissioners and the school board squabbled over the price and other issues. Some members from both elected boards raised concerns after learning that Beckham is a cousin of then-school board chairman and current Vice Chairman Kevin Collier.

M.B. Realty failed to close on the property, and its contract with the foundations expired following several extensions on May 16, 2017.

Ultimately, the county purchased the land from the foundations for $4.2 million after the landowners lowered the price and the city of Belmont agreed to pay $400,000 toward the purchase in exchange for long term use of the new middle school's recreation facilities. Beckham and M.B. Realty were not involved in those negotiations to purchase the property and were not paid any fees.

So Beckham filed the lawsuit, alleging various claims against the defendants, including that he lost more than $400,000 in profit when he was cut out from the land deal, and that the defendants acted “in concert and with the purposeful intent to remove the plaintiff from the sale of the property.” Beckham seeks monetary damages on claims of fraud, breach of covenant of good faith and fair dealing, antitrust violation, unjust enrichment and libel.

"Our belief is that M.B. Realty was treated unfairly and that they were, in bad faith with unjust cause, removed from this deal to their detriment but to the financial benefit of all other parties," said M.B. Realty's and Beckham's Charlotte-based attorney, James P. Galvin.

On Wednesday, April 24, 2019, the attorneys for both M.B. Realty and the two foundations agreed to file a motion to halt any further court proceedings, which includes the upcoming jury trial date on May 6, 2019. But Whitney could still rule to proceed with the trial.

The motion was entered because M.B. Realty and Beckham intend to file a notice of appeal to the Fourth Circuit Court of Appeals upon entry of the court’s order granting defendants’ motions for summary judgment.

"What we're seekig to do is to have a jury of our peers actually hear all of the facts of what happened, how it happened and for them to make a determination about everyone's role in this and whether it has created liability for my client," said Galvin. "We feel as much as anyone that the people involved on the county side or the Board of Education side, they're as culpable as anyone in this, perhaps, moreso. We're seeking to have the trial with all the proper parties, not just the foundations, and that's our next step."

Meanwhile, construction on the new $34 million Belmont middle school began earlier this year, and is expected to open during the 2021-2022 school year. The two-story building will have about 40 classrooms, a modern library and media center near the main entrance, separate bus and personal-car entrances with more than 200 parking spaces, a pick-up lane that can hold 100 cars, a multipurpose football field, baseball and softball fields and a field house, among other amenities.

The county will pay to build the school using borrowed money from $250 million in school bonds that county voters approved in May 2018.

You can reach Eric Wildstein at 704-869-1828 or Twitter.com/TheGazetteEric.

Never miss a story

Choose the plan that's right for you.
Digital access or digital and print delivery.